FinTech - Shaping the Financial World mit course finance technology fintech

Open APIs and Marketing Channels

• API types
  • Local
  • Web
  • Program (RPC)
• API service providers
  • Auth --> Auth0
  • Customer data --> Salesforce, Scale, Segment
  • Email --> Mailgun, SendGrid
  • Employment --> Checkr
  • Monitoring --> Datadog, Dynatrace, Splunk
  • Package shipping --> Shippo
  • Messaging, Video, and Voice --> MessageBird, Twilio
  • Payments/Finance --> Stripe, Plaid
• Open API
  • Publicly available APIs that allow developers to access permissioned customer data and third party applications
• Open banking
  • Publicly available APIs coming from the finance sector
  • TradFi becoming platforms to serve disruptors
• Europe has created rules that payments companies need to implement APIs/access to data
• There are a lot of data aggregators
  • Plaid
  • Envestnet/Yodlee
  • Finicity
  • Galileo
  • etc.
• "Do we really want to allow third parties to commercialize our data?" ~ Banks
  • Some banks are blocking disrupters (eg. PNC blocked Plaid)

Readings

• Report on open banking and application programming interfaces (APIs) Bank of International Settlement (November 2019)
• Fintechs next decade will look radically different Nik Milanovic, TechCrunch (December 22, 2019)
• RPA in Banking—Use-cases, Benefits and Steps Maruti Techlabs, Medium Post (November 28, 2019)

Study Questions / Issues to Prepare

1. What are some major trends affecting marketing channels & customer processes for financial services?
   • Giving data up to use services (eg. Mint, CreditKarma, YNAB)
2. How are open API initiatives influencing these trends?
   • Lots of disruptors are building businesses on/with APIs
3. What is robotic process automation (RPA) and screen scraping? How is it being used in the financial sector and does it relate to open API technologies?
   • Incumbents are building businesses with APIs to restrict businesses from being built with RPA/screen scraping